Gate Institute: ETH implied volatility drops to nearly a one-year low, increasing the cost-effectiveness of bullish volatility combination strategies

ETH4,31%
BTC3,47%

PANews January 21 News, according to Gate Research Institute observations, this Friday will see approximately $2.1 billion in BTC and ETH options settle simultaneously. Currently, the implied volatility (IV) for BTC and ETH are 42% and 56% respectively, with ETH IV dropping to the lowest 1.1% percentile in the past year. Over the past week, the 25-Delta Skew for BTC and ETH has generally turned negative, with the most significant decline in short-term (7D/30D), indicating a surge in funds buying put options and a notable increase in short-term hedging demand.

In terms of block trades, in the past 24 hours, the options market for BTC and ETH has mainly seen bearish spreads; the structure involves buying BTC puts at 88k and selling at 90k (30JAN26-P)), with approximately 1,115 BTC traded and a net premium income of about $730,000. For ETH, a wide straddle strategy was executed, buying 2800-P & 3200-C, with around 5,000 ETH traded and a net premium expenditure of $2.03 million.

Recently, Gate launched a convenient options trading tool — Portfolio Strategy Orders, to help users efficiently respond to different market conditions such as narrow-range oscillations, slow gains, or slow declines. This feature supports various common multi-leg options strategies like spreads and straddles, allowing users to create multi-leg options in one go and visually display the overall cost, profit and loss structure, and risk exposure in a portfolio format. Users can quickly build and manage multi-leg strategies without having to operate each leg separately, significantly reducing operational complexity and improving trading efficiency.

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